November 1, 2011

Historic Low Mortgage Rates… What Exactly Makes Them Historic?

You’ve probably been hearing a lot lately about mortgage rates being at a “historic low” but knowing what that really means may help you make more informed decisions, whether you’re thinking of purchasing your first home or refinancing your current home.

Richard Martin, vice president of credit risk at LMCU, has 36 years of experience in the banking industry and has seen a lot of rate fluctuations during that time.

“Part of the reason why rates are considered historic right now is because of how high they used to be. During the 1980’s mortgage rates soared to around 18%, no one could really foresee how low the rates would be today,” said Martin. “There was a time when if rates were lower than 12% you should grab the opportunity. That is what makes this time in the mortgage industry so significant.”

“Now is the time to buy. With rates being so low, more people than usual are looking to refinance or get a loan. We as a credit union are a full-service lender and offer all the products the market has available. We may not see rates this low again for a while so take advantage of this money saving opportunity now!”

If you would like to speak to one of our experienced mortgage officers, visit your local LMCU branch or call (616 or 800) 242-9790.